December 10, 2010

Argentina sees higher wheat output

Argentina's 2010/11 wheat output is estimated at 13 million tonnes, up from the previous forecast of 12.7 million due to higher-than-expected yields, the Buenos Aires Grains Exchange said Thursday (Dec 9).

The South American country is a leading global wheat exporter and a key supplier to neighbouring Brazil, but a harsh drought battered production last season and exports fell dramatically.

The new estimate, if confirmed, "would mean production will rise 39.2% from the last harvest," the exchange said.

By Thursday (Dec 9), growers had gathered 26.4% of the 4.32 million hectares sown with wheat this season, advancing 5.3% more than last week and two points ahead of last season's pace.

The grains exchange also held its forecasts for soy and commercial-use corn plantings despite dry weather at 18.7 million hectares and 3.15 million hectares respectively.

Argentina is the world's No. 3 soy supplier and the world's No. 2 corn exporter after the US, but persistent dry weather has delayed plantings and harmed some crops.